08.06.07
Posted in Blogs 1-5, Weekly Blog at 1:21 pm by jacklu17
Q.3 If an organisation has business processes that do not match any commercially available ERP, should the organisation adopt an ERP? Provide factors for and against and suggest other possible considerations that would factor in your reasoning.
If an organisation has business processes that do not match any commercially available ERP, the organisation should adopt an ERP. ‘ERP provides an opportunity to redesign business processes. With re-engineering, business processes are simplified and business rules are improved. Re-engineering with ERP enables organisations to be more responsive to changing markets and to shifts in competitors’ strategies’ (Sumner 2005).
Factors for adopting an ERP as outline by Sumner (2005):
ERP has integrated databases, which provides data sharing, reduced data redundancy, improved data consistency, data independence and improved data integrity;
The combination of re-engineering job and information technology is the key to improved productivity and reduced cost;
Increased efficiency;
Improved user interface;
To attain ‘Best Practices’;
With re-engineering, business processes are simplified and business rules are improved;
Factors against adopting an ERP:
EPR implementation can be very costly;
User commitment may not be strong during the implementation;
ERP projects represent considerable time commitment and cost;
Other possible consideration:
Many risks are involved in implementation and these risks can activate time and cost overruns;
IT infrastructure of the company;
Testing and training are activities that need to take into account;
Select an ERP vendor according to business and budget requirements;
References:
Sumner M, 2005, Enterprise resource planning, Pearson Prentice Hall, NJ
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